Gold Price Analysis: XAU/USD confirmed the bearish tone when it printed below $1693.78
- Gold is trading 1.63% lower on Wednesday after the risk-tone continued to improve.
- There has now been a lower high lower low pattern printed on the 4-hour timeframe.
XAU/USD 4-hour chart
Gold has been falling off a cliff on Wednesday as the move away from safe-haven assets looks to be all but confirmed. The price has now dipped below USD 1700 per troy level once again. All of this happened while the Nasdaq attacks the pre coronavirus highs and the USD continues to capitulate.
Looking at the 4-hour chart below the price has now printed a lower high lower low wave. The targets on the downside are based on Fibonacci extension and retracement confluences. The purple circled target is the 161.8% extension. This level matches up with an old support level at the consolidation low close to USD 1660 per troy ounce.
The red circled area is the 261.8% extension and this confluences perfectly with the 50% Fib retracement. This seems to be a very strong level and if the market does continue lower it could be where the buyers step in.
Dont forget on the higher timeframes the market is still in a firm uptrend. This move lower could just be a retracement and buyers could step in at the key support zones.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
